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Volume 3, Number 1 CONFLICT OF INTEREST QUESTIONS RAISED ABOUT FUNDING OF HUD FAIR HOUSING CAMPAIGN
From 1983 to 1985, approximately $1 million was spent to promote public awareness of fair housing laws that prohibit discrimination through a project sponsored by the Department of Housing and Urban Development (HUD). The project which critics say amounted to little more than a public relations campaign for Secretary of HUD Samuel Pierce, was held in eight cities, Baltimore, Dallas, New York, Oakland, Columbus, Philadelphia, New Orleans and Los Angeles. To pay for the events, HUD officials solicited monies from housing developers, real estate agents, and contractors "who do business with HUD and who in some cases had projects awaiting HUD approval" (Los Angeles Times, Dec. 27, 1987). This has raised questions of a possible conflict of interest as the persons asked to contribute might have thought their donation, or lack thereof, would affect their business relationships with HUD.
Walter Zelman, Executive Director of Common Cause in Los Angeles, was quoted in the Los Angeles Times article:
"There's clearly a potential conflict when policy makers in an agency request private money to achieve a goal and the money comes from people who want something from these policy makers... At a minimum, you ought to have public disclosure [of the money collected] ... And it's arguable whether there ought to be something considerably stronger like a ban."
One developer who manages hundreds of HUD subsidized rental units had his contribution of $100.00 returned with a letter that stated:
"$100 is on the ridiculous side... It does not pay for the time and energy we have used to create an opportunity for you to be identified with this project... With your involvement in housing and benefits from doing business with HUD you should want to make a better impression..."
The Los Angeles Times reported that the biggest expense for the campaign was advertising space on buses and billboards across the country. Other expenses included printing of posters, newspaper advertisements, and the costs for press conferences and parties which in some cities included helium balloons costing thousands of dollars.
  
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